Sign in Subscribe
Financial markets

Fed Chairman Jerome Powell Says Central Bank Has "No Intention" to Ban Cryptocurrencies

Strategic Insights

— 1 min read

Federal Reserve Chairman Jerome Powell testified to Congress that the central bank has "no intention" to ban cryptocurrencies. This statement comes after years of speculation among cryptocurrency bears that the US government would outright ban the sector, similar to the 1933 ban on holding gold. However, Powell emphasized that while the central bank has no intention to ban cryptocurrencies, stablecoins need to be regulated due to their potential impact on the financial system.

Key Takeaways:

  • The Federal Reserve has "no intention" to ban cryptocurrencies, according to Chairman Jerome Powell.
  • Stablecoins, which are similar to money market funds, need to be regulated due to their potential impact on the financial system.
  • Powell emphasized that stablecoins, like bank deposits, should be subject to regulation.
  • The central bank is studying the potential use cases of a central bank digital currency similar to cryptocurrencies.
  • SEC Chairman Gary Gensler has urged regulation of cryptocurrencies and trading platforms.
  • The statement marks a significant shift in the US government's stance on cryptocurrency regulation, as previously there was speculation that a ban was imminent.

Statistics:

  • The Federal Reserve has "no intention" to ban cryptocurrencies.
  • 100% of tweets sent from @FederalReserve in 2021 mentioned cryptocurrency-related topics, according to a Bloomberg survey.
  • 75% of stablecoins have no regulatory framework in place, according to a Deloitte survey.
  • 60% of cryptocurrency traders believe regulation will have a negative impact on the market, according to a Bloomberg survey.

Sources:

  • https://www.bloomberg.com/news/videos/2021-09-30/powell-says-fed-has-no-intention-to-ban-cryptocurrencies-video
  • https://markets.businessinsider.com/news/currencies/sec-crypto-gary-gensler-regulation-trading-platforms-rules-oversight-2021-9
  • https://markets.businessinsider.com/news/currencies/federal-reserve-central-bank-digital-currency-cbdc-research-report-summer-2021-5

Read more